PROVINCIAL ASSESSMENT

GRADE 12

ACCOUNTING P2
JUNE 2024

MARKS: 150

TIME: 2 hours

This question paper consists of 13 pages,

a formula sheet and a 11-page answer book.

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Accounting/P2 2 NW/June 2024
Grade 12

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully and follow them precisely.

1. Answer ALL the questions.

2. A special ANSWER BOOK is provided in which to answer ALL questions.

3. Show ALL workings to earn part-marks.

4. You may use a non-programmable calculator.

5. You may use a dark pencil or blue/black ink to answer the questions.

6. Where applicable, show ALL calculations to ONE decimal point.

7. A Financial Indicator Formula Sheet is attached at the end of this

question paper.

8. Write neatly and legibly.

9. Use the information in the table below as a guide when answering the
question paper. Try NOT to deviate from it.

QUESTION TOPIC MARKS MINUTES

1 Bank Reconciliation 35 30
2 Cost Accounting 45 35
3 Stock Valuation 45 35
4 Fixed Assets 25 20

TOTAL 150 120

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Accounting/P2 3 NW/June 2024
Grade 12

QUESTION 1: BANK RECONCILIATION AND CREDITORS RECONCILIATION

(35 marks; 30 minutes)

1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true'
or 'false' next to the question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK.

1.1.1 A Bank Reconciliation Statement should be prepared every month to

assist in maintaining internal control of the cash of the business.

1.1.2 Credit card sales are regarded as cash transactions.

1.1.3 Debit interest on the bank statement must be recorded in the Cash
Payments Journal as bank charges.

1.1.4 Credit balance on the bank statement reflects an unfavourable

balance.

1.1.5 A bank overdraft is a short-term loan that is transferred into the

business current bank account. (5)

1.2 BANK RECONCILIATION

The information provided relates to P&K Traders. The business is owned by

Pako Kenneth. The business uses the official bank statement which is
received on the 28th of each month.
REQUIRED:
1.2.1 Use the table provided in the ANSWER BOOK and calculate the final (9)
totals for the Cash Journals on 31 July 2023.

1.2.2 Calculate the correct bank balance on 31 July 2023. (5)

1.2.3 Prepare the Bank Reconciliation Statement on 31 July 2023. (10)

1.2.4 Refer to information A (i).

 Explain why the rule of prudence will be used in accounting for

fraudulent activities in the books and financial statements. Give
ONE point. (2)

 Explain how this type of fraudulent activity can be avoided in the

future. Give TWO points. (4)

INFORMATION:

A. Bank Reconciliation Statement on 30 June 2023:

Favourable balance as per Bank Statement 89 700

Outstanding deposit (3 June 2023) 67 500
Outstanding deposit (27 June 2023) 27 375
Outstanding EFT 153 5 800
Outstanding EFT 155 25 800
Favourable balance as per Bank account ?

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Accounting/P2 4 NW/June 2024
Grade 12

NOTE:
(i) The outstanding deposit of R67 500 did not appear on the Bank
Statement for July 2023. An investigation revealed that this money
was never deposited. The previous bookkeeper cannot be traced
and the amount must be written off.
(ii) EFT 153 was correctly reflected as R 8 500 on the July 2023 Bank
Statement.
(iii) All other outstanding amounts from the previous month appeared
on the Bank Statement for July 2023.

B. Provisional Cash Journal totals on 31 July 2023:

 Cash Receipt Journal: R615 900
 Cash Payments Journal: R579 525

C. The following items appeared only on the Bank Statement for

July 2023:

 Bank charges, R4 275

 Interest on favourable bank balance, R435
 A direct deposit of R9 375 from a debtor in settlement of an account
of R9 750.
 A debit order of R5 550 for the monthly insurance appeared twice
on the Bank Statement. The bank will rectify this on the Bank
Statement next month.
 Deposit received from Ruth Technical College, R7 510.
NOTE: This is an error on the statement as the business does not
deal with this college. This will be rectified on the next statement.

D. The owner withdrew R3 565 from an ATM to pay wages on 29 July

2023, but did not inform the bookkeeper.

E. The following entries were in the Cash Journals for July 2023 but
not on the Bank Statement:

 A deposit of R41 000

 EFT No.228, R16 800
 EFT No.230, R4 255

F. The Bank Statement on 31 July 2023 reflected a balance of, R?

35

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Accounting/P2 5 NW/June 2024
Grade 12

QUESTION 2: COST ACCOUNTING (45 marks; 35 minutes)

2.1 Choose an example from COLUMN B that matches a cost category in COLUMN
A. Write only the letter (A–D) next to the question numbers (2.1.1 to 2.1.4) in the
ANSWER BOOK, e.g. 2.1.5 F.

COLUMN A COLUMN B
2.1.1 Selling and distribution cost A Raw materials used in the factory

B Direct raw material plus Direct

2.1.2 Factory overheads cost labour cost

2.1.3 Direct material cost C Office telephone account

2.1.4 Prime cost D Advertising expenses

E Salary of the factory foreman

(4 x 1) (4)

2.2 LENAH MANUFACTURERS

The business manufacturers leather purses. The information relates to financial

year ended on 29 February 2024.

REQUIRED:

2.2.1 Refer to Information C.

Calculate the factory overhead cost (10)

2.2.2 Prepare the Production Cost Statement on 29 February 2024. (11)

INFORMATION:

A. 2024 2023
Work in progress ? 525 000

B. Details of the workers in production:

Number of workers 45
Basic (normal) wage rate 55
Normal time hours worked by each worker 1 840
Overtime rate 60%
(Above the
normal wage rate)
Overtime time hours worked by each worker 250

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Accounting/P2 6 NW/June 2024
Grade 12

C. NOTE: The bookkeeper calculated the factory overhead cost at

R2 031 500.

The following costs were omitted and must be taken into account:

(i) The closing stock of factory indirect material, R8 000.

(ii) Insurance is a fixed monthly premium for the entire financial year.
The amount paid, R238 000, includes the premium for March and
April 2024. 2/3 of this expense relates to the factory.

(iii) Water and electricity allocated to the sales department was

R122 500.
NOTE that water and electricity is shared according to floor space, as
follows:

Factory 630 m2
Sales 350 m2
Office 220 m2

The following entry must be corrected:

Rent of R210 000 was recorded in the factory overhead cost. However,
the bookkeeper used the incorrect ratio of 2 : 6 : 1 for Factory, Sales and
Office. The correct ratio is 6 : 2 : 1 respectively.

D. Total prime cost for the year amounted to R12 800 000.

E. Total production for the year, 34 500 units, were produced at a cost of
R450 per unit.

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Accounting/P2 7 NW/June 2024
Grade 12

2.3 TLOTLO MANUFACTURERS

The information relates to Tlotlo manufactures. The business is owned by

Tlotlo Mampe. He makes dresses. The financial year ended on
29 February 2024.

REQUIRED:

2.3.1 Control over raw material:

 Tlotlo is concerned about the wastage of material in production.

Calculate the number of metres of fabric that was wasted. (4)

 Calculate the total cost of the wastage of fabric. (2)

 Provide TWO possible reasons for this wastage. (4)

INFORMATION:

A. Direct material stock:

Fabric
Opening stock 2 830 metres
Purchases 15 340 metres
Raw materials issued to factory 14 160 metres

 Fabric is purchased at a fixed cost price of R250 per metre.

 It takes 1,6 metres of fabric to make one dress.
 Number of units produced and sold 8 750.

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Accounting/P2 8 NW/June 2024
Grade 12

2.4 SUZAN’S TOY FACTORY

This factory manufactures toy teddy bears. There is no work-in-progress stock

at the beginning or end of each year. The financial year ends on 29 February
2024.

Suzan decided to address the problem of low profits made in 2023 by making
some changes to improve sales and production.

REQUIRED:

2.4.1 Provide a calculation to confirm that the break-even point for the 2024
financial year is correct. (3)

2.4.2 Explain why Suzan is pleased with the production level, sales, and
break-even point. Quote figures. (4)

2.4.3 Suzan is concerned about the increase of R5 700 in total fixed costs.
Provide ONE reason why she should not be concerned. Quote
figures. (3)

INFORMATION:

29 FEBRUARY 2024 28 FEBRUARY 2023

TOTAL UNIT COST TOTAL UNIT COST
R R R R
Direct material 491 400 100,00 320 000 80,00
Direct labour 275 184 56,00 288 000 72,00
Selling and
176 904 36,00 96 000 24,00
distribution
VARIABLE COST: 943 488 192,00 704 000 176,00
Factory overhead 171 007 34,80 168 000 42,00
Administration 74 693 15,20 72 000 18,00
FIXED COST: 245 700 50 240 000 60

Selling price per unit R255 R240

Units produced and 4 914 units 4 000 units
sold
Break-even point 3 900 units 3 750 units
45

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Accounting/P2 9 NW/June 2024
Grade 12

QUESTION 3: STOCK VALUATION (45 marks; 35 minutes)

3.1 Choose the correct word(s) from those given in brackets. Write only the
word(s) next to the question numbers (3.1.1 to 3.1.4) in the ANSWER BOOK.

3.1.1 In the (perpetual/periodic) inventory system, the cost of sales must be

calculated at the end of the year.

3.1.2 The (specific identification/weighted-average) stock valuation

method is best suited for unique high-value products.

3.1.3 In the perpetual inventory system, merchandise purchased is

recorded as an (asset/expense) to the business.

3.1.4 The (first-in-first-out/weighted-average) stock valuation method is

best suited for products of similar value purchased in large quantities.
(4 x 1) (4)

3.2 LUELLA LADIES’ HANDBAGS

The information is relating to Luella Ladies Bags. The store is situated in

Johannesburg and is owned by Reatlegile Maine. The business trades in
handbags. Handbags are valued using the first-in-first-out method and
periodic inventory system.

REQUIRED:

3.2.1 Calculate the following:

 Value of the closing stock on 31 December 2023 (5)

 Gross profit for the year ended 31 December 2023 (8)

 Calculate how long (in days) it will take to sell the closing stock of
Luella ladies’ handbags. (3)

3.2.2 Reatlegile suspects that some handbags have been stolen despite
the cameras installed in the store.

 Calculate the number of handbags that are missing. (6)

 Explain to Reatlegile why she only discovered the loss at the end
of the year. (2)

 Suggest ONE additional measure that she can implement to

address the problem of missing items. (2)

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Accounting/P2 10 NW/June 2024
Grade 12

3.2.3 Refer to information E.

The owner Reatlegile Maine feels that the Specific Identification method is
more suitable to value the handbags. She requested the bookkeeper to
extract the units sold from each batch purchased.

 Explain TWO points to the owner regarding the benefits of using

Specific Identification method. (4)

 Calculate the value of closing stock on 31 December 2023 using

Specific Identification method. (5)

INFORMATION

A. Stock of handbags:

Cost price TOTAL

DATE UNITS
per unit (including transport)
1 January 2023 180 R1 200 R237 600
31 December 2023 220 ? ?
Purchases during the year:
Cost price TOTAL
DATE UNITS
per unit (including transport)
February 2023 250 R1 230 R338 250
June 2023 370 R1 250 R508 750
September 2023 200 R1 275 R280 500
820 R1 127 500

NOTE: Carriage on purchases is charged at 10% of the cost price.

C. Returns:
20 units from September 2023 purchases were returned to suppliers. They
only covered the cost of the units returned, excluding transport costs.

D. Sales:
740 units were sold at R1 750 each, R1 295 000.

E. Units sold:
To test the specific identification option, the bookkeeper was able to obtain
the following sales figures as requested by the owner:

UNITS SOLD
DATE PURCHASED
PER BATCH
January 2023 (opening stock) 120
February 2023 205
June 2023 285
September 2023 170

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Accounting/P2 11 NW/June 2024
Grade 12

3.3 PROBLEM SOLVING

John T Mobile Traders has two branches in two different towns selling
Freestyle projectors. John, the owner, is concerned about the performance
of each branch and has decided to investigate. Information for the two
branches for March 2023 is presented below:

REQUIRED:

3.3.1 Identify ONE problem in relation to each branch. Quote relevant

figures to support your answer. In each case, offer John advice on
how to solve the problem. (6)

INFORMATION:

A. General information for both branches (per month):

Normal Monday to Fridays 8:30–16:30 160 hours

time
Overtime Mondays to Fridays 16:30–18:30 40 hours
Saturdays 9:30–12:30 12 hours
Total 52 hours

Overtime salary/wage is 1½ times the normal rate.

OMOLEMO NGIXI
BRANCH BRANCH
Stock on hand (1 March 2023) 80 units 80 units
Selling price per unit R5 800 R5 800
Units sold 58 47
Units returned by customers 3 8
Credit sales R191 400 R104 400
Cash received and deposited
from cash sales R120 000 R121 800
Hours worked (normal time) 156 hours 120 hours
Overtime hours 10 hours 50 hours
Rent expense per month R8 000 R8 000

45

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Accounting/P2 12 NW/June 2024
Grade 12

QUESTION 4: FIXED ASSETS (25 marks; 20 minutes)

4.1 FIXED ASSETS

The information relates to California Hardware. The financial year ended

30 June 2023.

4.1.1 The business owns three delivery bakkies.

Refer to information A.

 The bookkeeper calculated the depreciation of Bakkie 1 as:

R500 000 x 20% = R100 000.

Explain to him why his method is incorrect and provide a

calculation to support your explanation. (4)

 Calculate the carrying value of Bakkies at the end 30 June 2023.

(Show ALL calculations) (12)

4.1.2 The business offers a delivery service to clients within a 30 km

radius of the store.

 They charge a fixed amount of R250 per delivery. Clients pay this
amount directly to the drivers of the bakkies.

 A total of 3 680 deliveries were made during the year in the 260
days the bakkies operated.

 As the internal auditor, you are concerned about the problems with
the delivery bakkies and the drivers.

Refer to information B.

 Identify and explain ONE big problem with each bakkie and its
driver. Quote figures in each case and provide a solution. (9)

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Accounting/P2 13 NW/June 2024
Grade 12

INFORMATION:

A. Fixed asset register on 01 July 2022:

BAKKIE 1 BAKKIE 2 BAKKIE 3

Date of purchased 1 January 2018 1 July 2021 1 July 2022
Cost price 500 000 437 500 350 000
Accumulated depreciation (450 000) (87 500) -
Depreciation 100 000 - 70 000

NOTE:

 Vehicle 1 is a very old asset

 Vehicle 2 was sold at its carrying value on 1 April 2023

 Depreciation: vehicles at 20% on cost

B. Information in respect of delivery bakkies and drivers on 31 May

2023:

Bakkie 1 Bakkie 2 Bakkie 3

Name of driver Lebo Nomsa Dan
Number of days 210 days 260 days 260 days
worked
Number of 280 2 100 1 300
deliveries made
Cash paid in by R70 000 R525 000 R275 000
drivers
Salaries paid to R52 000 R52 000 R52 000
drivers
Fuel and R36 000 R430 500 R201 500
maintenance costs
for the year
Fuel and R1,30 R2,05 R1,55
maintenance costs
per kilometer

25

TOTAL: 150

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 Accounting/P2 NW/June 2024
Grade: 12

GRADE 12 ACCOUNTING FINANCIAL INDICATOR FORMULA SHEET

Gross profit x 100 Gross profit x 100

Sales 1 Cost of sales 1

Net profit before tax x 100 Net profit after tax x 100
Sales 1 Sales 1

Operating expenses x 100 Operating profit x 100

Sales 1 Sales 1

Total assets : Total liabilities Current assets : Current liabilities

(Current assets – Inventories) : Current liabilities Non-current liabilities : Shareholders' equity

(Trade & other receivables + Cash & cash equivalents) : Current liabilities

Average trading stock x 365 Cost of sales .

Cost of sales 1 Average trading stock

Average debtors x 365 Average creditors x 365

Credit sales 1 Cost of sales 1

Net income after tax x 100

Net income after tax x 100 Number of issued shares 1
Average shareholders' equity 1
(*See note below)

Net income before tax + Interest on loans x 100

Average shareholders' equity + Average non-current liabilities 1

Shareholders' equity x 100 Dividends for the year x 100

Number of issued shares 1 Number of issued shares 1

Interim dividends x 100 Final dividends x 100

Number of issued shares 1 Number of issued shares 1

Dividends per share x 100 Dividends for the year x 100

Earnings per share 1 Net income after tax 1

Total fixed costs .

Selling price per unit – Variable costs per unit

NOTE:
* In this case, if there is a change in the number of issued shares during a financial year, the
weighted-average number of shares is used in practice.

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